By Bina Susan
National News – Despite a sharp increase in government revenues since 2023, the Federal Government, states and local governments are reportedly struggling to meet key financial obligations, raising concerns over transparency, fiscal discipline and the impact of public spending on citizens’ welfare.
According to findings by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), the three tiers of government received about ₦53.3 trillion from the Federation Account Allocation Committee (FAAC) between 2023 and May 2026. Combined with an estimated ₦65.5 trillion generated internally during the same period, total public revenue rose to approximately ₦118.8 trillion.
Analysts project the figure could climb to ₦150 trillion by the end of 2026 if current revenue trends continue.
The surge in earnings has been largely attributed to the Federal Government’s economic reforms, particularly the removal of fuel subsidy and the liberalisation of the foreign exchange market.
Monthly FAAC allocations rose significantly during the period, increasing from an average of ₦758 billion in 2022 to ₦845 billion in 2023, ₦1.3 trillion in 2024, ₦1.93 trillion in 2025, and about ₦2.08 trillion monthly between January and May 2026.
However, despite the record revenues, governments at all levels continue to grapple with unpaid contractor debts, pension arrears and poor implementation of the new national minimum wage in several states.
Contractors have repeatedly protested over delayed payments, with the All Indigenous Contractors Association of Nigeria (AICAN) claiming that only about ₦40 billion had been paid out of roughly ₦280 billion owed to its members.
Budget implementation has also remained weak. Official reports show that capital expenditure has consistently fallen below budgetary projections, with only about 30 per cent of the Federal Government’s 2025 capital budget reportedly implemented, forcing authorities to roll over nearly 70 per cent of capital projects into the 2026 fiscal year.
Economic and civil society groups say the sharp rise in public revenue has yet to translate into improved infrastructure, quality public services or better living conditions for Nigerians.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, acknowledged that revenue growth was one of the positive outcomes of the government’s reforms but stressed that the greater challenge lies in accountability and prudent management of public funds.
He called for greater transparency in state and local government finances, urging authorities to publish detailed budget information, procurement records, audit reports and project implementation updates to enable citizens demand accountability.
Similarly, Country Director of Global Rights Nigeria, Abiodun Baiyewu, said the increased revenues had not significantly improved the lives of ordinary Nigerians, describing poor governance as the major obstacle to development.
She urged citizens to become more involved in monitoring public spending and demanding greater transparency from elected officials.
Also commenting, Country Director of ActionAid Nigeria, Dr. Andrew Mamedu, argued that the size of government revenues should ordinarily drive significant development but noted that poor planning, excessive recurrent expenditure, inflation and governance challenges continue to undermine the impact of public spending.
He advocated stronger budget discipline, increased investment in capital projects, agriculture and infrastructure, improved procurement systems and greater public access to fiscal information.
Stakeholders also called for stronger whistleblower protection, expanded citizen participation in budget monitoring and an outcome-driven approach to public expenditure to ensure the benefits of rising government revenues are reflected in improved service delivery and economic development.
